Strategy (CoinChapter.com) — Strategy Plans to Issue 5M Shares of Series A Perpetual Strife Preferred Stock to Raise Capital

Strategy, led by Michael Saylor, plans to issue 5 million shares of its Series A Perpetual Strife Preferred Stock to raise capital.

MicroStrategy (NASDAQ:MSTR) plans to sell 5 million shares of its Series A Perpetual Strife Preferred Stock to raise capital. The company said the net proceeds will support working capital and the acquisition of Bitcoin, subject to market conditions.

The stock will accrue a 10% annual dividend, with stockholders receiving payments quarterly, beginning June 30, 2025. MicroStrategy also retains the option to buy back all outstanding shares if the total number of shares in the market drops below 25% of the initial offering.

The move comes after MicroStrategy’s smallest Bitcoin purchase since it began accumulating the asset. On March 17, the company purchased 130 BTC for $10.7 million, at an average price of $82,981 per BTC.

Prior to this, the smallest Bitcoin acquisition by the company was 169 BTC in August 2024. MicroStrategy has been accumulating Bitcoin since August 2020, steadily expanding its holdings over time.

MicroStrategy continues its Bitcoin accumulation amid a shift in market sentiment. On March 18, CryptoQuant CEO Ki Young Ju said that the Bitcoin bull cycle has ended and predicted 6 to 12 months of sideways or bearish price action.

Despite this shift in sentiment, MicroStrategy remains focused on expanding its Bitcoin reserves.

With the latest purchase, MicroStrategy and its subsidiaries now hold 499,226 BTC, acquired at an aggregate cost of $33.1 billion. The company’s average purchase price, including fees and expenses, is $66,360 per BTC.

If MicroStrategy acquires an additional 774 BTC (approximately $64 million), its total holdings will reach 500,000 BTC, representing 2.38% of the total Bitcoin supply.

At the time of writing, MicrpStrategy’s Bitcoin holdings are valued at $41.1 billion, reflecting an unrealized profit of over $8 billion despite recent market fluctuations.